Retailers: Cash
Debate between Lord Harlech and Lord Sandhurst
Lord Harlech (Con)
The definition of “legal tender” is quite narrow. However, the ongoing trend in payments in the UK has been away from cash and towards card payments and other digital transactions. However, cash continues to be used by millions of people across the UK, including those in vulnerable groups. The Government are legislating to ensure reasonable provision of cash withdrawal and deposit facilities.
Lord Sandhurst (Con)
Following that answer, I say that there is a real problem with the non-acceptance of cash. We all find it at different times. It is not a problem for me, but it is for those who do not have bank accounts, debit cards and credit cards. Will the Government consider having a proper review to address this, so that small businesses that find cash a nuisance can manage and that everyday people can use cash when they want to?
Lord Harlech (Con)
As my noble friend will know, technology and consumer behaviour are changing and it remains the choice of individual organisations whether to accept or decline any form of payment, including cash or card, based on a consideration of factors, such as customer preference and cost. However, the Government consider that their legislation in the Financial Services and Markets Bill will support organisations, including local businesses, to continue accepting cash by ensuring that they have reasonable access to deposit facilities. As I said, legal tender has a narrow technical meaning: it means that if you offer to fully pay off a debt to someone in legal tender, they cannot sue you for failing to repay.